The digital assets market, which is dominated by Bitcoin and Ethereum, is expected to reach new highs following a major correction, according to an updated report from Bloomberg.
Billion-dollar Bitcoin (BTC) is still on the table, according to Bloomberg’s senior commodity strategist Mike McGlone, who believes that the first-born cryptocurrency is well positioned to replace the United States dollar as the world’s de facto reserve asset.
According to Bloomberg’s Crypto Outlook, the “path of least resistance” for bitcoin (BTC) and ether (ETH) is $100,000 and $5,000, respectively, after the two assets weathered a more than 50 percent decline throughout the summer.
According to McGlone, cryptocurrency assets are in a revived and rejuvenated bull market, with the benefit of a deep discount from prior highs at the start of the second half of 2021, which is the second half of that year.
Portfolios with no exposure to bitcoin or ether are “naked,” according to him, as illustrated by the relative underperformance of gold and government bonds:
“Portfolios of some combination of gold and bonds appear increasingly naked without some Bitcoin and Ethereum joining the mix. A macro risk-off decline is a primary threat for the crypto bull market.”
Even while estimates of Bitcoin prices in the six-figure range are nothing new, McGlone’s long-term forecast places the cryptocurrency near the center of the global financial system.
The dollar has grown more than 300 percent against key peers since President Richard Nixon abolished the greenback’s gold peg in 1971, said McGlone, who went on to explain that Bitcoin represented “the digital future” of the digital currency. He went on to say the following:
“We foresee a future of Bitcoin, the digital reserve asset, complementing the dollar reserve currency.”
Bitcoin’s most ardent advocates have long believed that the cryptocurrency would one day mature and become a worldwide reserve asset of significant value.
Bitcoin’s superior monetary policy, in an age in which central banks have inflated the money supply, has contributed to wealth inequality and higher pricing for goods, services, and assets. This is the basis of their conviction.
It has also been acknowledged in institutional circles, with JPMorgan Chase and BlackRock claiming that Bitcoin is reducing gold’s market share as a safe haven for financial assets.
The bitcoin price surged beyond $51,000 on Friday, as the entire cryptocurrency market surged to levels not seen in more than three months. At Friday’s peak, the entire market capitalization of all cryptocurrencies surpassed $2.4 trillion, compared to a low of approximately $1.2 trillion in mid-July.
